Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

If Jane is not maximizing her utility with the original purchase, remembering the Law of Diminishing Marginal Utility, would she be better off buying one less fries and one more chicken sandwich? Explain your reasoning and show any calculations.

Sagot :

jepessoa

Answer:

Since Jane's marginal utility per dollar spent is much greater for chicken sandwiches, that means that she is not maximizing her utility by purchasing fries. Instead of buying the third order of fries she should buy another chicken sandwich. The third order of fries only yields 3 utils per dollar. We are not given the exact utils per dollar of the fourth chicken sandwich, but the third one yielded 15 utils per dollar and the marginal decline is not that steep. The important number is the utils per dollar, not the price of the goods.

View image jepessoa
Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.